Pitfalls If Any With Iowa Tax Sales?
Hello,
I plan to attend a June Tax sale in Sioux City, IA. Has anyone on this board invested in Iowa tax sale certificates and had a negative experience? I have done my research of the whole process. When the properties become available to the public, I will view numerous properties and determine a list of properties I do not want to buy. Once, I purchase a tax certificate I will get 2% per month as long as I hold it, and can get paid out by the owner or lender or down the road can be in line to take ownership of property. It all seems to good. What downsides are there??
Thanks.
Well,
You have to research throughly all properties you will be bidding on.
E.g.:
Make sure they are not government owned, since then you cannot obtain a deed.
Make sure all the taxes, interest, costs and fees due are less than the value of the property. Sometimes a property may have several years of taxes accrued.
Make sure the property has no EPA problems. If you end up owning it you may be liable for the clean up even if you did not cause the problem.
Make sure the property is usable. I have seen many people bid on briges, lakes, railroads, roads, etc.
If vacant lot, make sure it is usable (or buildable). Check zoning, etc.
If vacant lot, check for flooding.
If vacant lot, check to make sure it is not in a wetland.
If vacant lot, check the sizes and shape of lot to make sure it is a valuale piece of real estate.
If vacant lot, check to make sure you have egress and ingress to the property (that it is not landlocked).
Decide on whether your goal is interest or acquiring a property. Most single family homes will redeem, so you can pretty much assume interest-only play there.
Good luck! Let me know how you did.
Hello lyubomira2
Your post was very helpful and was what I was looking for.
Thank you again.